1010-Chapter9

Chapter 9 : 

Chapter 9 Management Information Systems

Management Information Systems (MIS) : 

Management Information Systems (MIS) Management information system (MIS) An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations Output, or reports, are usually generated through accumulation of transaction processing data Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization

Sources of Management Information : 

Sources of Management Information Schematic

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Corporate databases ofinternaldata 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 Application databases

Outputs of a Management Information System : 

Outputs of a Management Information System Scheduled reports Produced periodically, or on a schedule (daily, weekly, monthly) Key-indicator report Summarizes the previous day’s critical activities Typically available at the beginning of each day Demand report Gives certain information at a manager’s request Exception report Automatically produced when a situation is unusual or requires management action

Scheduled Report Example : 

Scheduled Report Example

Key Indicator Report Example : 

Key Indicator Report Example

Demand Report Example : 

Demand Report Example

Exception Report Example : 

Exception Report Example

Outputs of a Management Information System : 

Outputs of a Management Information System Etc. See Figure 9.2 Drill Down Reports Provide detailed data about a situation.

Characteristics of a Management Information System : 

Characteristics of a Management Information System Provides reports with fixed and standard formats Hard-copy and soft-copy reports Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users

Management Information Systems for Competitive Advantage : 

Management Information Systems for Competitive Advantage Provides support to managers as they work to achieve corporate goals Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement

MIS and Web Technology : 

MIS and Web Technology Data may be made available from management information systems on a company’s intranet Employees can use browsers and their PC to gain access to the data

Functional Aspects : 

Functional Aspects MIS is an integrated collection of functional information systems, each supporting particular functional areas. Schematic

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An Organization’sMIS FinancialMIS MarketingMIS HumanResourcesMIS Etc. AccountingMIS Drill down reports Exception reports Demand reports Key-indicator reports Scheduled reports Databasesofexternaldata Databasesofvalidtransactions Transactionprocessingsystems Businesstransactions Businesstransactions Extranet Internet Figure 9.3 Etc.

Financial MIS : 

Financial MIS Provides financial information to all financial managers within an organization. Schematic

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Financial statements Uses and managementof funds Financial statisticsfor control Operationaldatabases Databasesof validtransactionsfor eachTPS Transactionprocessingsystems Businesstransactions Businesstransactions Internet orExtranet Figure 9.3 FinancialMIS Businesstransactions Databases ofexternal data Databases ofinternal data FinancialDSS FinancialES Financialapplicationsdatabases Customers,Suppliers

Inputs to the Financial Information System : 

Inputs to the Financial Information System Strategic plan or corporate policies Contains major financial objectives and often projects financial needs. Transaction processing system (TPS) Important financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. External sources Annual reports and financial statements of competitors and general news items.

Financial MIS Subsystems and Outputs : 

Financial MIS Subsystems and Outputs Financial subsystems Profit/loss and cost systems Auditing Internal auditing External auditing Uses and management of funds

Manufacturing MIS : 

Manufacturing MIS Schematic

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Quality control reports Process control reports JIT reports Operational databases Databasesof validtransactionsfor eachTPS Transactionprocessingsystems Businesstransactions Businesstransactions Internet orExtranet Figure 9.6 ManufacturingMIS Businesstransactions Databases ofexternal data Databases ofinternal data ManufacturingDSS ManufacturingES Manufacturingapplicationsdatabases Customers,Suppliers MRP reports Production schedule CAD output

Inputs to the Manufacturing MIS : 

Inputs to the Manufacturing MIS Strategic plan or corporate policies. The TPS: Order processing Inventory data Receiving and inspecting data Personnel data Production process External sources

Manufacturing MIS Subsystems and Outputs : 

Manufacturing MIS Subsystems and Outputs Design and engineering Master production scheduling Inventory control Manufacturing resource planning Just-in-time inventory and manufacturing Process control Computer-integrated manufacturing (CIM) Quality control and testing

Marketing MIS : 

Marketing MIS Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness Schematic

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Sales by customer Sales by salesperson Sales by product Operational databases Databasesof validtransactionsfor eachTPS Transactionprocessingsystems Businesstransactions Figure 9.9 MarketingMIS Databases ofexternal data Databases ofinternal data ManufacturingDSS ManufacturingES Marketingapplicationsdatabases Pricing report Total service calls Customer satisfaction

Inputs to Marketing MIS : 

Inputs to Marketing MIS Strategic plan and corporate policies The TPS External sources: The competition The market

Marketing MIS Subsystems and Outputs : 

Marketing MIS Subsystems and Outputs Marketing research Product development Promotion and advertising Product pricing

Human Resource MIS : 

Human Resource MIS Concerned with all of the activities related to employees and potential employees of the organization

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Benefit reports Salary surveys Scheduling reports Operational databases Databasesof validtransactionsfor eachTPS Transactionprocessingsystems Businesstransactions Figure 9.12 HumanResourceMIS Databases ofexternal data Databases ofinternal data ManufacturingDSS ManufacturingES Humanresourceapplicationsdatabases Training test scores Job applicant profiles Needs and planningreports

Inputs to the Human Resource MIS : 

Inputs to the Human Resource MIS Strategic plan or corporate policies The TPS: Payroll data Order processing data Personnel data External sources

Human Resource MIS Subsystems and Outputs : 

Human Resource MIS Subsystems and Outputs Human resource planning Personnel selection and recruiting Training and skills inventory Scheduling and job placement Wage and salary administration

Other MISs : 

Other MISs Accounting MISs Provides aggregated information on accounts payable, accounts receivable, payroll, and other applications. Geographic information systems (GISs) Enables managers to pair pre-drawn maps or map outlines with tabular data to describe aspects of a particular geographic region.

End of Chapter 9 : 

End of Chapter 9 Chapter 10