Business Processes and Information Systems The Order Fulfillment Process Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions.
Types of MISInformation Systems are developed around the functionalareas of business like marketing, finance etc. and are also termed as Functional Information Systems.These may be as•Financial Information System•Marketing Information System•Personnel Information System•Production Information System and so on.
Enterprise Application ArchitectureEnterprise applications automate processes that span multiple business functions and organizationallevels and may extend outside the organization.
Financial Information SystemFinancial Information System provides financial informationto all financial managers within an organization and abroader set of people who need to make better decisions. Financial MIS performs the following functions: •Makes financial data available on a timely basis to shorten analysis turnaround time. •Provides easy access to data for both financial and non-financial users, often through the use of corporate intranet . •Integrates financial and operational information from multiple sources, including the Internet, into a single MIS. •Enables analysis of financial data along multiple dimensions- time, geography, product, plant , customer etc. •Analyzes historical and current financial activity. •Monitors and controls the use of funds over time. •For adhering to legal requirements
Financial Information System Financial MIS aids managers in: •Capital Budgeting Decisions •Financing decisions •Dividend decisions •Current asset management
Financial Information System ( Contd.)Financial MIS composes of the Inputs1. Transaction Data: This data includes credit applications, billing, payment vouchers, stock transfers, cheques, journal and ledger entries etc.2. Financial Intelligence : This data is collected from banks, government, stock markets, etc. which is processed to determine its impact on the company’s economy.3. Organizational Plan: Another important input to Financial MIS, that portrays the objectives of the company. This needs to be reflected in the output of Financial MIS, which may be in the form of financial plans.
Financial Information System Database Of External Data •Sorted Data •ForecastsBusiness Transaction Database FINANCIAL •Management RatiosTransactions Processing From MIS System TPS •Audit & Control •Other Financial Decisions& Plans Datawarehouse •Financial DSS/EIS
Financial Information SystemSome of the Financial MIS are• Tally• BMS• IFPS
Marketing MIS It is the MIS that supports managerial activities in marketing as product development, distribution, pricing decisions, and promotional effectiveness. The Marketing MIS help managers in marketing activities of: • Customer Identification: who, when, where, in what quantity,etc. • Purchase motivation factors: social, economical, psychological factors of customers. • Physical distribution: optimum integration of transportation, warehousing, merchandising. • Communication function: This function includes decisions on advertising, personal selling, sales promotion, publicity, packaging etc. • Transaction functions : Activities that transfer the title of ownership as order handling, invoicing, billing, credit management, policy & guarantee etc. • Post transaction Function: Feedback, after sales service support etc.
Marketing MIS Database Of External Data Marketing DSS Transaction Database MARKETINGBusiness Processing From MISTransactions System TPS Marketing EIS•Internet Marketing ES•CRM Datawarehouse
Human Resource ManagementInformation System Human Resource MIS are concerned with activities related to employees and potential employees of the organization. The HR functions that are facilitated by HRMIS are as: •Manpower Planning •Staffing •Training & Development •Performance evaluation •Wage & Salary administration •Separation activities
Manufacturing ManagementInformation SystemManufacturing or Production Information System providesinformation on production/ operation activities of anorganization and thus facilitates the decision-making process of production managers of the organization. Manufacturing MIS facilitate decision making in areas as: •Product Design: CAD, CAE •Plant Location & Layout: •Production Planning & Control:Routing, Scheduling, Loading •Quality Control:
MIS Characterstics A Management Information System has the following Characterstics: •Systems Approach MIS follows Systems approach i.e. MIS adopts wholistic approach to the study of systems and its performance in the light of the objective of the MIS. It takes comprehensive view or complete look at the subsystems of the organization. •Management Oriented MIS should be designed in Top-down approach. MIS should be derived from the overall business plan. •Need based MIS should cater to specific information needs of managers at different levels I.e. for strategic planning level, management control level, and operations control level.
MIS Characterstics( Contd.)•Exception Based MIS should be on Exception based reporting Principle anddeviation should be reported to decision maker at the required level.•Future Oriented MIS should not merely provide past information but should provide information based on the future projections based on which manager may initiate suitable action.•Integrated MIS should blend information from different departments orconstitute of different possible subsystems of the organization.•Long Term Planning MIS designers should have future objectives andneeds of the company in mind.•Common Data Flow & Central Database