Mis dss


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Mis dss

  1. 1. Management Information SystemsITEC 1010 Information and Organizations
  2. 2. MIS ModelITEC 1010 Information and Organizations
  3. 3. 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 • A combination of computers and people that is used to provide information to aid in making decisions and managing a firm.ITEC 1010 Information and Organizations
  4. 4. Managers and Information  Generally, managers at different levels of an organizational hierarchy:  Make different types of decisions  Control different types of processes  Therefore, they have different information needsITEC 1010 Information and Organizations
  5. 5. Managers and InformationITEC 1010 Information and Organizations
  6. 6. The Traditional Organizational Pyramid  Many organizations follow pyramid model  CEO at top  Small group of senior managers, one level down  Larger number of middle managers, reporting to senior managers  Many more lower-level managers who report to middle managers  Clerical and Shop Floor Workers  Bottom of organizational pyramid  Operational Management  In charge of small groups of front-line workersITEC 1010 Information and Organizations
  7. 7. The Traditional Organizational Pyramid  Tactical Management  Also called middle managers  Make decisions for subordinates, affecting the near and somewhat more distant future  Strategic Management  Decisions affect entire or large parts of the organization; “what to do” decisionsITEC 1010 Information and Organizations
  8. 8. Characteristics of Information at Different Managerial Levels  Different management levels have different information needs  Information needed by different managerial and operational levels varies in the time span covered, level of detail, source, and other characteristics over a broad spectrumITEC 1010 Information and Organizations
  9. 9. Characteristics of Information at Different Managerial Levels  Data Range  Amount of data from which information is extracted  Time Span  How long a period the data covers  Level of Detail  Degree to which information is specificITEC 1010 Information and Organizations
  10. 10. Characteristics of Information at Different Managerial Levels  Source: Internal versus External  Internal data: collected within the organization  External data: collected from outside sources • Media, newsletters, government agencies, InternetITEC 1010 Information and Organizations
  11. 11. The Nature of Managerial Work  Planning  Planning at different levels • Long-term mission and vision • Strategic goals • Tactical objectives  Most important planning activities • Scheduling • Budgeting • Resource allocationITEC 1010 Information and Organizations
  12. 12. The Nature of Managerial Work An example of a mission statement, strategic goals, and tactical objectives for an in-line skate manufacturerITEC 1010 Information and Organizations
  13. 13. The Nature of Managerial Work The main ingredients of planningITEC 1010 Information and Organizations
  14. 14. The Nature of Managerial Work  Controlling  Managers control activities by comparing plans to results. Figure 9.5 Examples of processes used to control projectsITEC 1010 Information and Organizations
  15. 15. The Nature of Managerial Work  Decision Making  Both planning and control call for decision making  The higher the level of management: • The less routine the manager’s activities • The more open the options • The more decision-making involvedITEC 1010 Information and Organizations
  16. 16. Sources of Management Information SchematicITEC 1010 Information and Organizations
  17. 17. Employees Corporate Databases Corporate databases of intranet of external internal data data Decision support systems Transaction Databases Management Executive Business processing of information Application support transactions systems valid systems databases systems transactions Drill-down reports Expert Exception reports systems Demand reports Operational Key-indicator reports databases Input and Scheduled error list reportsITEC 1010 Information and Organizations
  18. 18. 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 actionITEC 1010 Information and Organizations
  19. 19. Scheduled Report Example Daily Sales Detail Report Prepared: 08/10/xx Order Customer Sales Ship # ID Rep ID Date Quantity Item # Amount P12453 C89321 CAR 08/12/96 144 P1234 $3,214 P12453 C89321 CAR 08/12/96 288 P3214 $5,660 P12453 C03214 GWA 08/13/96 12 P4902 $1,224 P12455 C52313 SAK 08/12/96 24 P4012 $2,448 P12456 C34123 JMW 08J/13/96 144 P3214 $720ITEC 1010 Information and Organizations
  20. 20. Key Indicator Report Example Daily Sales Key Indicator Report This Last Last Month Month Year Total Orders Month to Date $1,808 $1,694 $1,014 Forecasted Sales for the Month $2,406 $2,224 $2,608ITEC 1010 Information and Organizations
  21. 21. Demand Report Example Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx Sales Rep ID Amount CAR $42,345 GWA $38,950 SAK $22,100 JWN $12,350ITEC 1010 Information and Organizations
  22. 22. Exception Report Example Daily Sales Exception Report – ORDERS OVER $10,000 Prepared: 08/10/xx Order Customer Sales Ship # ID Rep ID Date Quantity Item # Amount P12453 C89321 CAR 08/12/96 144 P1234 $13,214 P12453 C89321 CAR 08/12/96 288 P3214 $15,660 P12453 C03214 GWA 08/13/96 12 P4902 $11,224 … … … … … … … … … … … … … …ITEC 1010 Information and Organizations
  23. 23. Outputs of a Management Information System Earnings by Quarter (Millions) Actual Forecast Variance 2ND Qtr 1999 $12.6 $11.8 6.8% Drill Down Reports Provide detailed data 1st Qtr 1999 $10.8 $10.7 0.9% about a situation. 4th Qtr 1998 $14.3 $14.5 -1.4% 3rd Qtr 1998 $12.8 $13.3 -3.0% Etc. See Figure 9.2ITEC 1010 Information and Organizations
  24. 24. 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 usersITEC 1010 Information and Organizations
  25. 25. 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 improvementITEC 1010 Information and Organizations
  26. 26. 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 dataITEC 1010 Information and Organizations
  27. 27. Functional Aspects  MIS is an integrated collection of functional information systems, each supporting particular functional areas. SchematicITEC 1010 Information and Organizations
  28. 28. Internet Internet An Organization’s MIS Financial MIS Business transactions Drill down reports Accounting Transaction Databases MIS Exception reports processing of Demand reports systems valid transactions Key-indicator reports Marketing MIS Scheduled reports Business transactions Databases Human of Resources Etc. external data MIS Extranet Extranet Etc. Figure 9.3ITEC 1010 Information and Organizations
  29. 29. Financial MIS  Provides financial information to all financial managers within an organization. SchematicITEC 1010 Information and Organizations
  30. 30. Databases of Financial Databases of internal data external data DSS Business transactions Transaction Databases processing of valid Financial systems transactions MIS Financial for each applications TPS databases Business transactions Financial statements Financial Operational Uses and management ES Internet or databases of funds Internet or Extranet Extranet Financial statistics for control Business Customers, transactions Suppliers Figure 9.3ITEC 1010 Information and Organizations
  31. 31. 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.ITEC 1010 Information and Organizations
  32. 32. Financial MIS Subsystems and Outputs  Financial subsystems  Profit/loss and cost systems  Auditing  Internal auditing  External auditing  Uses and management of fundsITEC 1010 Information and Organizations
  33. 33. Decision Support SystemsITEC 1010 Information and Organizations
  34. 34. Decision Support Systems  Decision support systems (DSS)  Offer potential to assist in solving both semi- structured and unstructured problemsITEC 1010 Information and Organizations
  35. 35. Decision Making as a Component of Problem Solving Intelligence Decision making Design Problem Choice solving Implementation MonitoringITEC 1010 Information and Organizations
  36. 36. Solution Types  Optimization model  Finding the best solution  Satisficing model  Finding a good -- but not necessarily the best -- solution to a problem  Heuristics  Commonly accepted guidelines or procedures that usually find a good solutionITEC 1010 Information and Organizations
  37. 37. Problem Solving Factors  Multiple decision objectives  Increased alternatives  Increased competition  The need for creativity  Social and political actions  International aspects  Technology  Time compressionITEC 1010 Information and Organizations
  38. 38. Characteristics of a DSS (1)  Handles large amounts of data from different sources  Provides report and presentation flexibility  Offers both textual and graphical orientationITEC 1010 Information and Organizations
  39. 39. Characteristics of a DSS (2)  Supports drill down analysis  Performs complex, sophisticated analysis and comparisons using advanced software packages  Supports optimization, satisficing, and heuristic approachesITEC 1010 Information and Organizations
  40. 40. Characteristics of a DSS (3)  Performs different types of analyses  “What-if” analysis • Makes hypothetical changes to problem and observes impact on the results  Simulation • Duplicates features of a real system  Goal-seeking analysis • Determines problem data required for a given resultITEC 1010 Information and Organizations
  41. 41. Goal Seeking Example  You know the desired result  You want to know the required input(s)  Example:  Microsoft Excel’s “Goal Seek” and “Solver” functionsITEC 1010 Information and Organizations
  42. 42. Excel demoITEC 1010 Information and Organizations
  43. 43. Capabilities of a DSS (1)  Supports  Problem solving phases  Different decision frequencies Merge with How many another widgets company? should I order? low high FrequencyITEC 1010 Information and Organizations
  44. 44. Capabilities of a DSS (2)  Highly structured problems  Straightforward problems, requiring known facts and relationships.  Semi-structured or unstructured problems  Complex problems wherein relationships among data are not always clear, the data may be in a variety of formats, and are often difficult to manipulate or obtainITEC 1010 Information and Organizations
  45. 45. Decision Making Levels Strategic Strategic-level managers involved with long-term decisions Tactical Operational-level managers involved with Operational daily decisions High Low Decision FrequencyITEC 1010 Information and Organizations
  46. 46. Integration of TPS, MIS, and DSS  In many organizations they are integrated through a common database  Separation of DSS transactions in the database from TPS and MIS transactions may be important for performance reasonsITEC 1010 Information and Organizations
  47. 47. Web-Based Decision Support Systems  Web-based decision support systems  Decision support system software provides business intelligence through web browser clients that access databases either through the Internet or a corporate intranetITEC 1010 Information and Organizations
  48. 48. Components of a DSS  Model management software (MMS)  Coordinates the use of models in the DSS  Model base  Provides decision makers with access to a variety of models  Dialogue manager  Allows decision makers to easily access and manipulate the DSSITEC 1010 Information and Organizations
  49. 49. Database Model base DBMS MMS Access to the internet, networks, External database External and other computer access databases systems Dialogue managerITEC 1010 Information and Organizations
  50. 50. Model Base  Model Base  Provides decision makers with access to a variety of models and assists them in decision making  Models  Financial models  Statistical analysis models  Graphical models  Project management modelsITEC 1010 Information and Organizations
  51. 51. Advantages and Disadvantages of Modeling  Advantages • Less expensive than custom approaches or real systems. • Faster to construct than real systems • Less risky than real systems • Provides learning experience (trial and error) • Future projections are possible • Can test assumptions  Disadvantages • Assumptions about reality may be incorrect • Accuracy of predications often unreliable • Requires abstract thinkingITEC 1010 Information and Organizations
  52. 52. Group Decision Support System  Group Decision Support System (GDSS)  Contains most of the elements of DSS plus software to provide effective support in group decision-making settingsITEC 1010 Information and Organizations
  53. 53. Databases Model base GDSS processor GDSS software Access to the internet and corporate intranet, Dialogue External database External networks, and other manager access databases computer system UsersITEC 1010 Information and Organizations
  54. 54. Characteristics of a GDSS (1)  Special design  Ease of use  Flexibility  Decision-making support  Delphi approach (decision makers are geographically dispersed)  Brainstorming  Group consensus  Nominal group techniqueITEC 1010 Information and Organizations
  55. 55. Characteristics of a GDSS (2)  Anonymous input  Reduction of negative group behaviour  Parallel communication  Automated record keeping  Cost, control, complexity factorsITEC 1010 Information and Organizations
  56. 56. Components of a GDSS and GDSS Software  Database  Model base  Dialogue manager  Communication capability  Special software (also called GroupWare)  E.g., Lotus Notes  people located around the world work on the same project, documents, and files, efficiently and at the same timeITEC 1010 Information and Organizations
  57. 57. GDSS Alternatives high Local area Wide area Decision frequency decision network decision network Decision Teleconferencing room low close distant Location of group membersITEC 1010 Information and Organizations
  58. 58. Decision Room  Decision Room  For decision makers located in the same geographic area or building  Use of computing devices, special software, networking capabilities, display equipment, and a session leader  Collect, coordinate, and feed back organized information to help a group make a decision  Combines face-to-face verbal interaction with technology-aided formalizationITEC 1010 Information and Organizations
  59. 59. ITEC 1010 Information and Organizations
  60. 60. Wide Area Decision Network  Characteristics  Location of group members is distant  Decision frequency is high  Virtual workgroups • Groups of workers located around the world working on common problems via a GDSSITEC 1010 Information and Organizations
  61. 61. Executive Support System  Characteristics Board of directors  A specialized DSS that includes all the hardware, President software, data, procedures, and people used to assist Function area senior-level executives vice presidents within the organization Function area managersITEC 1010 Information and Organizations
  62. 62. Characteristics of ESSs  Tailored to individual executives  Easy to use  Drill down capabilities  Support the need for external data  Help with situations with high degree of uncertainty  Futures orientation (predictions, forecasting)  Linked with value-added business processesITEC 1010 Information and Organizations
  63. 63. Capabilities of an ESS  Support for  defining overall vision  strategic planning  strategic organizing and staffing  strategic control  crisis managementITEC 1010 Information and Organizations