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  • 1. Chapter 9 Management Information Systems
  • 2. 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
  • 3. Sources of Management Information Schematic
  • 4. Corporate databases of internal data Databases of external data Databases of valid transactions Operational databases Transaction processing systems Management information systems Decision support systems Executive support systems Expert systems Business transactions Input and error list Drill-down reports Exception reports Demand reports Key-indicator reports Scheduled reports Employees Corporate intranet Application databases
  • 5. 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
  • 6. Scheduled Report Example $720 P3214 144 08J/13/96 JMW C34123 P12456 $2,448 P4012 24 08/12/96 SAK C52313 P12455 $1,224 P4902 12 08/13/96 GWA C03214 P12453 $5,660 P3214 288 08/12/96 CAR C89321 P12453 $3,214 P1234 144 08/12/96 CAR C89321 P12453 Daily Sales Detail Report Prepared: 08/10/xx Amount Item # Quantity Ship Date Sales Rep ID Customer ID Order #
  • 7. Key Indicator Report Example Last Year Last Month This Month $2,608 $2,224 $2,406 Forecasted Sales for the Month $1,014 $1,694 $1,808 Total Orders Month to Date Daily Sales Key Indicator Report
  • 8. Demand Report Example $12,350 JWN $22,100 SAK $38,950 GWA $42,345 CAR Amount Sales Rep ID Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx
  • 9. Exception Report Example … … … … … … … … … … … … … … $11,224 P4902 12 08/13/96 GWA C03214 P12453 $15,660 P3214 288 08/12/96 CAR C89321 P12453 $13,214 P1234 144 08/12/96 CAR C89321 P12453 Daily Sales Exception Report – ORDERS OVER $10,000 Prepared: 08/10/xx Amount Item # Quantity Ship Date Sales Rep ID Customer ID Order #
  • 10. Outputs of a Management Information System Etc. See Figure 9.2 Drill Down Reports Provide detailed data about a situation. -3.0% $13.3 $12.8 3 rd Qtr 1998 -1.4% $14.5 $14.3 4 th Qtr 1998 0.9% $10.7 $10.8 1 st Qtr 1999 6.8% $11.8 $12.6 2 ND Qtr 1999 Variance Forecast Actual Earnings by Quarter (Millions)
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. Functional Aspects
    • MIS is an integrated collection of functional information systems, each supporting particular functional areas.
    Schematic
  • 15. An Organization’s MIS Financial MIS Marketing MIS Human Resources MIS Etc. Accounting MIS Drill down reports Exception reports Demand reports Key-indicator reports Scheduled reports Databases of external data Databases of valid transactions Transaction processing systems Business transactions Business transactions Extranet Internet Figure 9.3 Etc.
  • 16. Financial MIS
    • Provides financial information to all financial managers within an organization.
    Schematic
  • 17. Financial statements Uses and management of funds Financial statistics for control Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Business transactions Internet or Extranet Figure 9.3 Financial MIS Business transactions Databases of external data Databases of internal data Financial DSS Financial ES Financial applications databases Customers, Suppliers
  • 18. 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.
  • 19. Financial MIS Subsystems and Outputs
    • Financial subsystems
      • Profit/loss and cost systems
      • Auditing
      • Internal auditing
      • External auditing
      • Uses and management of funds
  • 20. Manufacturing MIS Schematic
  • 21. Quality control reports Process control reports JIT reports Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Business transactions Internet or Extranet Figure 9.6 Manufacturing MIS Business transactions Databases of external data Databases of internal data Manufacturing DSS Manufacturing ES Manufacturing applications databases Customers, Suppliers MRP reports Production schedule CAD output
  • 22. 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
  • 23. 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
  • 24. Marketing MIS
    • Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness
    Schematic
  • 25. Sales by customer Sales by salesperson Sales by product Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Figure 9.9 Marketing MIS Databases of external data Databases of internal data Manufacturing DSS Manufacturing ES Marketing applications databases Pricing report Total service calls Customer satisfaction
  • 26. Inputs to Marketing MIS
    • Strategic plan and corporate policies
    • The TPS
    • External sources:
      • The competition
      • The market
  • 27. Marketing MIS Subsystems and Outputs
    • Marketing research
    • Product development
    • Promotion and advertising
    • Product pricing
  • 28. Human Resource MIS
    • Concerned with all of the activities related to employees and potential employees of the organization
  • 29. Benefit reports Salary surveys Scheduling reports Operational databases Databases of valid transactions for each TPS Transaction processing systems Business transactions Figure 9.12 Human Resource MIS Databases of external data Databases of internal data Manufacturing DSS Manufacturing ES Human resource applications databases Training test scores Job applicant profiles Needs and planning reports
  • 30. Inputs to the Human Resource MIS
    • Strategic plan or corporate policies
    • The TPS:
      • Payroll data
      • Order processing data
      • Personnel data
    • External sources
  • 31. 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
  • 32. 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.
  • 33. End of Chapter 9 Chapter 10