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  • 1. Management Information System © Rajkumar S Adukia rajkumarfca@gmail.com The senior /top management needs to know happenings in the company. However they should not be overburdened with too much operational and transactional data. The data should be processed into information i.e. analysis, summary, and exception reporting. The bottom line is that the information systems should enable them to implement, control, and monitor plans, strategies, tactics, new products, new business models or new business ventures. The reporting should be made periodically. They, should however be alerted immediately when significant events occur. Management needs to get information for: • Activity forecasting • Monitoring Performance • Customer satisfaction • Setting revenue goals • Market penetration • Cost The information aids in decision making: o Setting earnings targets o Making business continuity plans o Compensation plans o Performance measures STRATEGIC MANAGEMENT INFORMATION Areas include: o Regulatory requirements o Competitive trends o Financing/liquidity needs o Financial exposures o Benchmarking information i.e. comparing the company’s financial performance and ratios with industry competitors o Industry trends o Key Performance Indicators Market data • Sales of new products • Demand for new products • Customer profiles • Customer purchase histories • Marketing research data
  • 2. • Advertising data ACCOUNTING & FINANCIAL STATEMENTS INFORMATION Accounting • Schedule of manual journal entries above a particular level (e.g., Rs.50,000; dependent on size of company), with summary of backup for each entry and senior executive authorizing the entry. • Adjustments to prior period data. • Analysis of budget variations. • Analysis of deviations from accounting standards. • Analysis of major revenue items with possible alternative accounting treatments. Financial statements Revenue • Linearity Analysis of revenue by division or segments compared to prior periods Assets • Current asset-impairment analyses for major assets and changes from prior periods Reserves • Analysis of changes in reserve accounts (like bad debt, excess/obsolete inventory ; accounts-payable accruals), • Details of basis for the amount of reserve and explanation of changes from formula or rationale in prior periods INFORMATION FROM INTERNAL AUDIT • The findings, conclusions, recommendations, any reservations or qualifications. • Areas of non existence or weaknesses in internal controls . • Areas where internal controls exist, but exceptions are observed. • Improvements brought about in the operations between the last audit and the current audit.
  • 3. OPERATIONAL INFORMATION Receivables • Analysis of receivables aging, along with comparison of current data to prior periods • Schedule of returns by customer, including comparisons to prior periods • Analysis of significant sales to new customers, • Schedule of significant collection problems, with explanation of reasons for non-payment. • Schedule of deviations from standard payment or discount terms on significant transactions Review of other information • Concentration of customers • Concentration of suppliers • Periodical review of system for prevention of fraud and misappropriation • Review of analyst estimates. • Periodical review of organisational structure and staffing to ensure that they are adequate with regard to organisation’s business. Exception reporting • Reporting of issues: Management needs to be informed of technical problems like machinery breakdown, equipment failure, telecommunications failure, hardware/software problems, space related issues, staff attrition etc. • Reporting of transaction related issues: Reporting on exceptional transaction related issues, like failure to deliver on time, unresolved customer complaints, loss of goods etc. • Reporting of events requiring management intervention: Procedure for reporting events that require management intervention. USING EXECUTIVE INFORMATION SYSTEM Reports derived from financial system can be obtained using computer based reporting systems generically called Executive Information System (EIS).
  • 4. An EIS provides graphical displays and has drill down capabilities, which help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. Provided below are the features of the two widely used software: • Hyperion • Cognos Hyperion HYPERION SYSTEM 9 BI+ Features:  Interactive Reporting  Compliance Dashboard  Analysis Interactive Reporting features • It has graphical interactive dashboard which can be personalised by the users . Dashboards provide a cohesive view of operations which makes it easier to spot trends so that opportunities can be utilised or corrective action taken. • Dashboards offer at-a-glance summaries of key performance indicators (KPIs) so managers can quickly spot trends and anomalies, select different views of data, and drill into deeper detail for the most relevant insight into the health of the business. • Interactive Reporting synthesizes multiple analyst reports, presentations, and spreadsheets to deliver visibility into organizational performance. • Access a wide variety of business data sources. Data can be accessed and analysed from transactional systems, data warehouses, and data marts. Managers and analysts can access both data and metadata from multiple sources on one report, gaining side-by-side analysis. • Users can provide drill paths into additional reports and other dashboards for deeper analysis. • Provides multiple levels of viewing and analysis in a single report. Rather than being forced to design multiple reports for people with different access privileges, Interactive Reporting lets you deliver a single report that different users can interact with based on their varying privileges. • Reports support both pre-defined and “drill anywhere” analysis, allowing users to instantly expand their ad hoc analyses by adding items to their datasets. User friendly:
  • 5. • Business users can create a dashboard with easy, wizard based dashboard development • Requires minimal training and support and encourages rapid user adoption. • Managers who best understand their business needs can work with business analysts to quickly create dashboards without relying on IT. • Provides Offline access. This enables mobile employees, customers, and partners to view business information, even when they’re offline. • Interactive Reporting lets non-technical users quickly create their analyses with its drag-and-drop functionality. Managers access common data models created by power users, analysts, or IT—and then select information, specify sorts, define filters, even create computed items. They also can access report visualization options, such as charts, gauges, and pivots for “cross-tab” reporting. Conditional formatting further enables a management-by-exception paradigm. Compliance Dashboard features
  • 6. • It helps in assessment of potential risk exposures. • It helps in identifying the remediation needed to correct gaps in internal controls and provides confidence to senior management that financial statements and disclosures are accurate and in full compliance. • It includes a data model with pre-built connectors to data sources, a set of compliance metrics, as well as a series of easy-to-use dashboard screens, gauges, meters and stoplights designed to rapidly convey the critical information financial managers require. • It provides important financial insights like the status of the financial closing process. • If potential risk exposures are identified, one can drill into time periods, sub-accounts, and different entities in the organizational hierarchy to quickly discover the potential source of the risks. Enterprise Analytics
  • 7. Highlights • Gain rich insight into your business • Move beyond silos of business intelligence and disconnected spreadsheets • Understand customer segments and behavior patterns • Rapidly discover trends and highlights in large datasets with an innovative visual interface • Gain deep analytic power and responsiveness for thousands of simultaneous users • Reduce costs with easy, fast development, deployment, and maintenance • Rely on robust security Gain rich insight into your business: Essbase Analytics supports more than 250 sophisticated algorithms out of the box, with extensible analytics and procedural calculations built on centralized logic and business rules. • Financial functions such as Net Present Value, Rate of Return, and Compound Growth are important for translating strategic goals into operational plans, evaluating competing requests for capital expenditures, and tracking the effectiveness of capital investment decisions. Expense reporting is as easy as tagging members that require expense computation, making all subsequent calculations involving those members “expense aware.” • Time series algorithms track moving minimum, maximum, and average inventory levels.
  • 8. • Statistics and data mining are important to predict customer purchasing behavior based on a variety of pricing and promotional strategies. Microsoft Office Integration • Hyperion System 9 BI+provides advanced Microsoft Office integration so business users can leverage Microsoft Excel, Word, Outlook, and • PowerPoint as interactive access points to centralized analytic data. Secure, multi-user write back allows users to interactively create forecasts, budgets, and plans to • allocate resources. Understand customer segments and behavior patterns. • Clustering, attributes, and set analysis. Essbase Analyticsincludes features such as clustering, attributes, and set analysis to make it easy to create value segments; • Company can assess customer affinity to a particular message, product,or service; and determine which communication channel to use for cross-sell and up-sell campaigns into different segments. Rapidly discover trends and highlights in large datasets with an innovative visual interface. Essbase Analytics and Enterprise Analytics are easy to use and allow even novice database users to rapidly discover trends and highlights in large datasets. Gain deep analytic power and responsiveness for thousands of simultaneous users. Essbase Analytics and EnterpriseAnalytics deliver sub-second response times for sophisticated analysis of terabytes of data for thousands of simultaneous users, and giving business users speed-of-thought responsiveness to manage performance in real time. Reduce costs with easy, fast development, deployment, and maintenance. Manageability features of Essbase Analyticsand Enterprise Analytics make it easy to quickly address business needs at a lower cost of development, deployment,and maintenance. Rely on robust security. As a module of the HyperionSystem 9 BI+ platform, Essbase Analytics integrates with the platform’s common authentication system thus reducing the administrative and maintenance costs of users integrating with LDAP, MSAD, and NTLM authentication systems. • Control of user access. User access can be controlled down to the individual cell level through Essbase Analytics functionality,which safeguards sensitive information. • Group- and role-based security models. Flexible security models allow your users to access the information they need to drive performance while supporting the accesscontrol required.
  • 9. Cognos COGNOS 8 BUSINESS INTELLIGENCE Features:  Time Series Analysis  Dashboard Time Series Analysis • Built in time series analysis lets users quickly and easily performance from one period to the next using automatic calculations for absolute and percentage • Support for large data volumes lets users explore large flat business dimensions such as products users can control the data they view, search for values with a simple right mouse click • Details & attributes: Provides users with related information about the data they want to analyze, including attributes defined in the OLAP data source. • Top/Bottom “N” analyses: Helps users isolate best and worst performers in any dimension , based on any measure • Drag –and –Drop context: Lets users focus on most relevant information. Users can set the context of a report based on sophisticated category combinations. Dashboard
  • 10. • Present key performance data in automotive style gauges to see performance data at a glance. • Integrate information from different sources into a single chart that users can print and share • Interactive maps provide high level information and let users drill through to more detail