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Level of people and their information needs - Unitedworld School of Business

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  • 1. Management InformationSystems
  • 2. Types of information systems For different types oforganizations For different functions withinorganizations For different business needs and at different managementlevels of an organization1 - 2
  • 3. 1 - 3MajorFunctionalSubsystemSome typical usesMarketing Sales forecasting, sales planning, customer andsales analysisManufacturing Production planning and scheduling, costcontrol analysis.Logistics Planning and control of purchasing, inventories,distributionPersonnel Planning personnel requirements, analyzingperformance, salary administration.Finance andAccountingFinancial analysis, cost analysis, capitalrequirements planning, income measurementInformationprocessingInformation system planning, cost-effectivenessanalysisTop management Strategic Planning, resource allocation
  • 4. Value Chain and IS1 - 4
  • 5. 1 - 5ActivitySubsystemSome typical usesTransactionProcessingProcessing of orders, shipmentsand receiptsOperational control Scheduling of activities andperformance reportsManagementcontrolFormulation of budgets andresource allocationStrategic planning Formulation of objectives andstrategic plans
  • 6. 1 - 6
  • 7. 1 - 7TimeScalesLevel ofDetailSourceDegree ofUncertaintyFrequencyOperational Middle StrategicManagement Management ManagementImmediateHighlydetailedInternalCertainFrequentLongTermSummarisedExternalUncertainInfrequent
  • 8. How MIS Obtains Data fromTPS1 - 8
  • 9. 9Decision Support Systems Serve middle management Support non routine decision making◦ E.g. What is impact on production schedule ifDecember sales doubled? Often use external information as wellfrom TPS and MIS DSS are either Model-Driven (What if) ordata-driven (Online Analytical Processing)
  • 10. 10Voyage Estimation Model basedDSS
  • 11. 11Executive support systemsSupport senior managementAddress nonroutine decisions requiringjudgment, evaluation, and insightIncorporate data about external eventsas well as summarized informationfrom internal MIS and DSSE.g. ESS that provides minute-to-minute view of firm’s financialperformance as measured by workingcapital, AP / AR, cash flow, andinventory.
  • 12. 12Model of an ESSThis system pools data fromdiverse internal and externalsources and makes themavailable to executives in aneasy-to-use form.
  • 13. 13Interrelationships AmongSystemsTPS are major producers of information, which, in turn, produce information forother systems. increasingly firms are using new technologies to integrateinformation that resides in many different systems.
  • 14. 1 - 14
  • 15. 15Types of DecisionsLevel OperationalControlManagementControlStrategicPlanningStructuredDecisionsInventoryReorder,ProductionSchedulingPricing ofBids,Selection ofcredit lineInstitutionsAcquisition ofa company,addition of newproduct lineUnstructuredDecisionsVendorSelection,hiring newsupervisorAllocation ofadvertising,Internalorganizationof a depttEntry into newmarket, neworganization ofcompany
  • 16. 16InformationCharacteristicsStructured UnstructuredPrespecified Ad HocScheduled UnscheduledDetailed SummarizedFrequent InfrequentHistorical Forward LookingInternal ExternalNarrow Focus Wide Scope
  • 17. 1 -17