► INTRO -1 [email protected]. MIS Management Information System [email protected].

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INTRO -1INTRO -1

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MISMIS

Management Information Management Information SystemSystem

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MANAGEMENTMANAGEMENT

ManagementManagement in all business and human in all business and human organization activity is simply the act of getting organization activity is simply the act of getting people together to accomplish desired goals and people together to accomplish desired goals and objectives objectives

Management comprises Management comprises planningplanning organizingorganizing staffingstaffing leadingleading or directing and or directing and controllingcontrolling an an organizationorganization (a group of one or more people or (a group of one or more people or entities) or effort for the purpose of accomplishing a entities) or effort for the purpose of accomplishing a goalgoal

Resourcing encompasses the deployment and Resourcing encompasses the deployment and manipulation of manipulation of human-resourceshuman-resources financialfinancial resources resources technologicaltechnological resources and resources and natural resourcesnatural resources FaheemkalwarYahoocom

MANAGEMENTMANAGEMENT

Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions

planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating

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InformationInformation

As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation

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SystemSystem

SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole

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MISMIS

Management InformationManagement InformationManagement information system helps Management information system helps

middle level management planning middle level management planning controlling and decision makingcontrolling and decision making

The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports

It can be presented graphically or It can be presented graphically or pictoricallypictorically

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

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Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

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Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

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MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

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Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

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An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

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Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

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Manufacturing MISManufacturing MIS

Schematic

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Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

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Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

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Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

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Page 2: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

MISMIS

Management Information Management Information SystemSystem

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MANAGEMENTMANAGEMENT

ManagementManagement in all business and human in all business and human organization activity is simply the act of getting organization activity is simply the act of getting people together to accomplish desired goals and people together to accomplish desired goals and objectives objectives

Management comprises Management comprises planningplanning organizingorganizing staffingstaffing leadingleading or directing and or directing and controllingcontrolling an an organizationorganization (a group of one or more people or (a group of one or more people or entities) or effort for the purpose of accomplishing a entities) or effort for the purpose of accomplishing a goalgoal

Resourcing encompasses the deployment and Resourcing encompasses the deployment and manipulation of manipulation of human-resourceshuman-resources financialfinancial resources resources technologicaltechnological resources and resources and natural resourcesnatural resources FaheemkalwarYahoocom

MANAGEMENTMANAGEMENT

Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions

planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating

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InformationInformation

As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation

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SystemSystem

SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole

FaheemkalwarYahoocom

MISMIS

Management InformationManagement InformationManagement information system helps Management information system helps

middle level management planning middle level management planning controlling and decision makingcontrolling and decision making

The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports

It can be presented graphically or It can be presented graphically or pictoricallypictorically

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

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Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 3: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

MANAGEMENTMANAGEMENT

ManagementManagement in all business and human in all business and human organization activity is simply the act of getting organization activity is simply the act of getting people together to accomplish desired goals and people together to accomplish desired goals and objectives objectives

Management comprises Management comprises planningplanning organizingorganizing staffingstaffing leadingleading or directing and or directing and controllingcontrolling an an organizationorganization (a group of one or more people or (a group of one or more people or entities) or effort for the purpose of accomplishing a entities) or effort for the purpose of accomplishing a goalgoal

Resourcing encompasses the deployment and Resourcing encompasses the deployment and manipulation of manipulation of human-resourceshuman-resources financialfinancial resources resources technologicaltechnological resources and resources and natural resourcesnatural resources FaheemkalwarYahoocom

MANAGEMENTMANAGEMENT

Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions

planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating

FaheemkalwarYahoocom

InformationInformation

As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation

FaheemkalwarYahoocom

SystemSystem

SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole

FaheemkalwarYahoocom

MISMIS

Management InformationManagement InformationManagement information system helps Management information system helps

middle level management planning middle level management planning controlling and decision makingcontrolling and decision making

The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports

It can be presented graphically or It can be presented graphically or pictoricallypictorically

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

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Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

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Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 4: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

MANAGEMENTMANAGEMENT

Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions

planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating

FaheemkalwarYahoocom

InformationInformation

As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation

FaheemkalwarYahoocom

SystemSystem

SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole

FaheemkalwarYahoocom

MISMIS

Management InformationManagement InformationManagement information system helps Management information system helps

middle level management planning middle level management planning controlling and decision makingcontrolling and decision making

The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports

It can be presented graphically or It can be presented graphically or pictoricallypictorically

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 5: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

InformationInformation

As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation

FaheemkalwarYahoocom

SystemSystem

SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole

FaheemkalwarYahoocom

MISMIS

Management InformationManagement InformationManagement information system helps Management information system helps

middle level management planning middle level management planning controlling and decision makingcontrolling and decision making

The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports

It can be presented graphically or It can be presented graphically or pictoricallypictorically

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 6: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

SystemSystem

SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole

FaheemkalwarYahoocom

MISMIS

Management InformationManagement InformationManagement information system helps Management information system helps

middle level management planning middle level management planning controlling and decision makingcontrolling and decision making

The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports

It can be presented graphically or It can be presented graphically or pictoricallypictorically

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 7: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

MISMIS

Management InformationManagement InformationManagement information system helps Management information system helps

middle level management planning middle level management planning controlling and decision makingcontrolling and decision making

The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports

It can be presented graphically or It can be presented graphically or pictoricallypictorically

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 8: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

DEFINITIONDEFINITION

An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 9: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

DEFINITIONDEFINITION

According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system

consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 10: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

OVERVIEWOVERVIEW

the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 11: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

OVERVIEWOVERVIEW

At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 12: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

OVERVIEWOVERVIEW

In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

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Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

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Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

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MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

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Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

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An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

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Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 13: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

MIS = IS MIS = IS

The terms The terms MISMIS and and information systeminformation system are often are often confused confused

Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making

MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline

MIS has also some differences with Enterprise MIS has also some differences with Enterprise

Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 14: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the

quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations

2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

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FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

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Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

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Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 15: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization

Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures

4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 16: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Various Advantages of Various Advantages of Information Management Information Management

SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a

link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost

6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 17: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

SOCIOLOGYSOCIOLOGY

POLITICAL POLITICAL SCIENCESCIENCE

PSYCHOLOGYPSYCHOLOGY

COMPUTER COMPUTER

SCIENCESCIENCEOPERATIONS OPERATIONS

RESEARCHRESEARCH

MANAGEMENTMANAGEMENT

SCIENCESCIENCE

TECHNICAL APPROACHESTECHNICAL APPROACHES

MISMIS

BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 18: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

INTRO -2INTRO -2

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 19: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Management Management Information SystemsInformation Systems

By Sarfraz HaiderBy Sarfraz Haider

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 20: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Data Versus Information Data Versus Information

In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably

For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as

facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something

At the same time information is defined as At the same time information is defined as

facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer

In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 21: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to

(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability

(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and

(3) organize data in ways that help (3) organize data in ways that help understanding understanding

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 22: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Role of InformationRole of Informationin Organizationsin Organizations

Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional

Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional

Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 23: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 24: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

OrganizationOrganization

Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 25: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Organization as a System Organization as a System

It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 26: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Organization as a System Organization as a System

There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 27: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers

Organization as a System Organization as a System

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 28: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Management againManagement again

Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing

The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 29: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Organization and informationOrganization and information

The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 30: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Organizational StructureOrganizational Structure

Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals

Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 31: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

HEC

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 32: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Components of an Components of an OrganizationOrganization

The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures

Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing

People - the human resources of the People - the human resources of the organizationorganization

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 33: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Components of an Components of an OrganizationOrganization

Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level

Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 34: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Information SystemInformation System

Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 35: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

What is A Component

A component is an independent and replaceable part of a system that fulfills a clear function

A component works in the context of a well-defined architecture

It communicates with other components by the interfaces

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 36: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Levels of decision MakingLevels of decision Making

Strategic Management 1048708 Set long-term objectives allocate

resources

1048708 Tactical Management 1048708 Monitor performance make adjustments

1048708 Operational 1048708 How to carry out specific day-to-day

tasks

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 37: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Types of DecisionsTypes of Decisions

1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known

1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown

1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors

areare unknown entails uncertainty and requires unknown entails uncertainty and requires

judgmentjudgment

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 38: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

6 Major Information Sys Types

by Support Provided 1048708 Transaction Processing Systems

(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems

(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 39: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

IS TypesIS Types

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 40: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Management Information Systems (MIS)

1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales

performance analysis pricing systems TPS KWS OAS MIS DSS EIS

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 41: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Types of SystemTypes of System

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 42: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Computer Based Information Computer Based Information SysSys

Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 43: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 44: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Decision MakingDecision Making

Decision Making 1048708 Decision making involves choosing

between two or more alternatives minus Remember that not making a

decision is a decision minus It has four major elements

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 45: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Decision MakingDecision Making

minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront

minus Problems are plentiful attention is scarce minus In order for problems to get attention they

have to first get on the policy agenda minus As the problem emerges and gains attention

it also tends to gain focus and take shape minus See problem definition notes below

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 46: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Decision MakingDecision Making

minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus

minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 47: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Decision MakingDecision Making

minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes

minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood

minus Similarly our preferences are rarely clear or constant when viewed over time

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 48: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Decision MakingDecision Making

minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information

minus Even if choices are not repeated current choices become precedents for future decision

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 49: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Decision MakingDecision Making

minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 50: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Constraints on decision making

minus Upper Limits of a Decision Limitations on how far a decisionmaker can go

minus Lower Limits of a Decision Minimum that must occur for problem to be solved

minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 51: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some

are logical some process information serially some are intuitive or creative some view interconnections better than others etc)

minus Some are more tolerant of ambiguity

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 52: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Combination of these two factors creates four styles minus Directive style have low tolerance for

ambiguity and seek rationality minus Analytical types accept ambiguity and

seek rationality minus Conceptual style tend to be intuitive

and accept ambiguity minus Behavioral styles work well with others

are intuitive and have a low tolerance for ambiguity

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 53: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Organizational constraints

minus Managers are strongly influenced by the criteria that they will be evaluated on

minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff

minus Organizations often impose time constraints minus Organizations often give preference to

historical precedents and decisions are often made in the context of a stream of decisions

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 54: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental

shortcuts when making decisions minus Availability heuristic the tendency for people

to base their judgments on information that is readily available to them

minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category

minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information

1048708

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 55: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Improving Creativity

minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions

minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them

minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 56: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Cultural differences

minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems

FaheemkalwarYahoocom

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 57: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

FaheemkalwarYahoocom

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 58: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

INTRO-3INTRO-3

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 59: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Chapter 9Chapter 9Management Information Systems

FaheemkalwarYahoocom

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 60: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Management Information Management Information Systems (MIS)Systems (MIS)

Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information

and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations

Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data

Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 61: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Sources of Management Sources of Management InformationInformation

FaheemkalwarYahoocom

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 62: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Corporatedatabasesofinternaldata

Databasesofexternaldata

Databasesofvalidtransactions

Operationaldatabases

Transactionprocessingsystems

Managementinformationsystems

Decisionsupportsystems

Executivesupportsystems

Expertsystems

Businesstransactions

Input anderror list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduledreports

Employees

Corporateintranet

Applicationdatabases

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 63: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Outputs of a Outputs of a Management Information SystemManagement Information System

Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily

weekly monthly)weekly monthly)

Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day

Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request

Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is

unusual or requires management actionunusual or requires management action

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 64: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Scheduled Report ExampleScheduled Report Example

Daily Sales Detail ReportDaily Sales Detail Report

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224

P1245P124555

C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448

P1245P124566

C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 65: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Key Indicator Report ExampleKey Indicator Report Example

Daily Sales Key Indicator ReportDaily Sales Key Indicator Report

ThisThisMonthMonth

LastLastMonthMonth

LastLastYearYear

Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014

Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608

FaheemkalwarYahoocom

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 66: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Demand Report ExampleDemand Report Example

Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report

Prepared 0810xxPrepared 0810xx

Sales Rep IDSales Rep ID AmountAmount

CARCAR $42345$42345

GWAGWA $38950$38950

SAKSAK $22100$22100

JWNJWN $12350$12350

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 67: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Exception Report ExampleException Report Example

Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000

Prepared 0810xxPrepared 0810xx

OrderOrder

CustomerCustomerIDID

Sales Sales Rep IDRep ID

ShipShipDateDate QuantitQuantit

yyItem Item AmountAmount

P1245P124533

C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214

P1245P124533

C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660

P1245P124533

C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 68: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Outputs of a Management Outputs of a Management Information SystemInformation System

Earnings by Quarter (Millions)Earnings by Quarter (Millions)

ActualActual ForecastForecast VarianceVariance

22NDND Qtr Qtr 19991999

$126$126 $118$118 6868

11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909

44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14

33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30

Etc See Figure 92

Drill Down ReportsProvide detailed data about a situation

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 69: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Characteristics of a Characteristics of a Management Information Management Information

SystemSystem Provides reports with fixed and Provides reports with fixed and

standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports

Uses internal data stored in the Uses internal data stored in the computer systemcomputer system

End users can develop custom End users can develop custom reportsreports

Requires formal requests from usersRequires formal requests from users

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 70: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Management Information Management Information Systems for Competitive Systems for Competitive

AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals

Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement

FaheemkalwarYahoocom

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 71: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

MIS and Web TechnologyMIS and Web Technology

Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet

Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data

FaheemkalwarYahoocom

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 72: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Functional AspectsFunctional Aspects

MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas

Schematic

FaheemkalwarYahoocom

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 73: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

An OrganizationrsquosMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Figure 93

Etc

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 74: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Financial MISFinancial MIS

Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization

Schematic

FaheemkalwarYahoocom

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 75: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Financial statements

Uses and managementof funds

Financial statisticsfor control

Operationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 93

FinancialMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

FinancialDSS

FinancialES

Financialapplications

databases

CustomersSuppliers

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 76: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Inputs to the Financial Inputs to the Financial Information SystemInformation System

Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often

projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)

Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger

External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of

competitors and general news itemscompetitors and general news items

FaheemkalwarYahoocom

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 77: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs

Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds

FaheemkalwarYahoocom

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

Page 78: ► INTRO -1 Faheemkalwar@Yahoo.com. MIS Management Information System Faheemkalwar@Yahoo.com.

Manufacturing MISManufacturing MIS

Schematic

FaheemkalwarYahoocom

Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

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Quality control reports

Process control reports

JIT reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Businesstransactions

Internet orExtranet

Internet orExtranet

Figure 96

ManufacturingMIS

Businesstransactions

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Manufacturingapplications

databases

CustomersSuppliers

MRP reports

Production schedule

CAD output

Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

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Inputs to the Manufacturing Inputs to the Manufacturing MISMIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process

External sourcesExternal sources

Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs

Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing

Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

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Marketing MISMarketing MIS

Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness

Schematic

Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Sales by customer

Sales by salesperson

Sales by productOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 99

MarketingMIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Marketingapplications

databases

Pricing report

Total service calls

Customer satisfaction

Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Inputs to Marketing MISInputs to Marketing MIS

Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources

The competitionThe competition The marketThe market

FaheemkalwarYahoocom

Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs

Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing

Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

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Human Resource MISHuman Resource MIS

Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization

Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Benefit reports

Salary surveys

Scheduling reportsOperationaldatabases

Databasesof valid

transactionsfor each

TPS

Transactionprocessing

systems

Businesstransactions

Figure 912

HumanResource

MIS

Databases ofexternal data

Databases ofinternal data

ManufacturingDSS

ManufacturingES

Humanresource

applicationsdatabases

Training test scores

Job applicant profiles

Needs and planningreports

Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Inputs to the Human Inputs to the Human Resource MISResource MIS

Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS

Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data

External sourcesExternal sources

FaheemkalwarYahoocom

Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs

Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration

Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom

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Other MISsOther MISs

Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on

accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications

Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn

maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region

End of Chapter 9End of Chapter 9

Chapter 10

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End of Chapter 9End of Chapter 9

Chapter 10

FaheemkalwarYahoocom


MIS 425 Lecture 1 – HTML Basics and Web Page Design Instructor: Martin Neuhard (martin_neuhard@yahoo.com)

MIS 425 Lecture 1 – HTML Basics and Web Page Design Instructor: Martin Neuhard ([email protected])

Intro to MIS – MGS351 Relational Database Design Extended Learning Module C.

Intro to MIS – MGS351 Relational Database Design Extended Learning Module C.

Intro to MIS (2)

Intro to MIS (2)

MY INTRO Sree Mis

MY INTRO Sree Mis

PoetryMAISRUL08126640125108127552934Maisrul@yahoo.com Roel Man Intro to Literature.

[email protected] Roel Man Intro to Literature.

MIS 420 : Big Data , BI , Business Analytics , & Intro to Data Visualization

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